Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Mar. 31, 2022 | May 16, 2022 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RED TRAIL ENERGY, LLC | |
Entity Central Index Key | 0001359687 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2022 | |
Entity File Number | 000-52033 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,148,160 | |
Entity Incorporation, State or Country Code | ND | |
Entity Tax Identification Number | 76-0742311 | |
Entity Address, Address Line One | 3682 Highway 8 South | |
Entity Address, Address Line Two | P.O. Box 11 | |
Entity Address, City or Town | Richardton | |
Entity Address, State or Province | ND | |
Entity Address, Postal Zip Code | 58652 | |
City Area Code | 701 | |
Local Phone Number | 974-3308 | |
Document Transition Report | false |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Current Assets | ||
Cash and equivalents | $ 6,894,249 | $ 508,521 |
Restricted cash - margin account | 3,251,832 | 4,706,723 |
Accounts receivable, primarily related party | 4,718,900 | 1,468,521 |
Inventory | 16,033,803 | 11,546,842 |
Prepaid expenses | 764,521 | 466,036 |
Total current assets | 31,663,305 | 18,696,643 |
Property, Plant and Equipment | ||
Land | 1,333,681 | 1,333,681 |
Land improvements | 4,465,311 | 4,465,311 |
Buildings | 10,051,817 | 9,581,778 |
Plant and equipment | 100,304,819 | 91,666,322 |
Construction in progress | 32,756,492 | 29,154,711 |
Gross property, plant and equipment | 148,912,120 | 136,201,803 |
Less accumulated depreciation | 75,087,161 | 72,777,271 |
Net property, plant and equipment | 73,824,959 | 63,424,532 |
Other Assets | ||
Operating Lease, Right-of-Use Asset | 612,247 | 762,847 |
Investment in RPMG | 605,000 | 605,000 |
Patronage equity | 4,924,123 | 4,924,123 |
Deposits | 40,000 | 40,000 |
Total other assets | 6,181,370 | 6,331,970 |
Total Assets | 111,669,634 | 88,453,145 |
Current Liabilities | ||
Bank Overdrafts | 0 | 1,343,608 |
Accounts payable | 4,637,846 | 10,099,876 |
Accrued expenses | 1,505,855 | 1,435,117 |
Derivative Liability | 163,250 | 0 |
Accrued loss on firm purchase commitments (see notes 3 and 7) | 980,000 | 184,000 |
Other Liabilities, Current | 2,104 | 11,008 |
Current maturities of notes payable | 18,737,535 | 723,775 |
Current portion of operating lease liabilities | 397,546 | 372,986 |
Total current liabilities | 26,424,136 | 14,170,370 |
Long-Term Liabilities | ||
Notes payable | 849,644 | 3,898,239 |
Long-term operating lease liabilities | 214,701 | 389,861 |
Total long-term liabilities | $ 1,064,345 | $ 4,288,100 |
Common Unit, Outstanding | 40,148,160 | 40,148,160 |
Common Unit, Issued | 40,148,160 | 40,148,160 |
Stockholders' Equity Attributable to Parent | $ 84,181,153 | $ 69,994,675 |
Total Liabilities and Members’ Equity | $ 111,669,634 | $ 88,453,145 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenues, primarily related party | $ 51,677,779 | $ 34,264,089 | $ 112,504,976 | $ 61,821,644 |
Cost of Goods Sold | ||||
Cost of goods sold | 46,002,623 | 28,138,486 | 88,820,405 | 51,778,912 |
Lower of cost or net realizable value adjustment | 0 | 0 | 0 | 263,777 |
Loss on firm purchase commitments | 596,000 | 0 | 796,000 | 0 |
Total Cost of Goods Sold | 46,598,623 | 28,138,486 | 89,616,405 | 52,042,689 |
Gross Profit | 5,079,156 | 6,125,603 | 22,888,571 | 9,778,955 |
General and Administrative Expenses | 659,859 | 714,511 | 1,757,039 | 1,459,955 |
Operating Income (Loss) | 4,419,297 | 5,411,092 | 21,131,532 | 8,319,000 |
Other Income (Expense) | ||||
Interest income | 19,910 | 17,366 | 36,530 | 40,632 |
Other income | 4,315 | 873,832 | 2,658,543 | 885,728 |
Interest expense | (4,518) | (12,742) | (16,055) | (26,026) |
Total other income (expense), net | 19,707 | 878,456 | 2,679,018 | 900,334 |
Net Income (Loss) | $ 4,439,004 | $ 6,289,548 | $ 23,810,550 | $ 9,219,334 |
Weighted Average Units Outstanding, Basic | 40,148,160 | 40,148,160 | 40,148,160 | 40,148,160 |
Weighted Average Units Outstanding, Diluted | 40,148,160 | 40,148,160 | 40,148,160 | 40,148,160 |
Net Income (Loss) Per Unit, Basic | $ 0.11 | $ 0.16 | $ 0.59 | $ 0.23 |
Net Income (Loss) Per Unit, Diluted | $ 0.11 | $ 0.16 | $ 0.59 | $ 0.23 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net income | $ 23,810,550 | $ 9,219,334 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,309,890 | 2,408,731 |
Change in fair value of derivative instruments | 163,250 | (239,214) |
Lower of cost of net realizable value adjustment | 0 | (263,777) |
Loss on firm purchase commitments | 796,000 | 0 |
Paycheck Protection Program Loan Forgiveness | (2,650,773) | (873,400) |
Change in operating assets and liabilities: | ||
Accounts receivable | (3,250,379) | (4,203,192) |
Inventory | (5,282,961) | (782,028) |
Prepaid expenses | (298,485) | (423,083) |
Increase (Decrease) in Contract with Customer, Liability | (8,904) | 4,245 |
Accounts payable | (5,670,909) | (2,999,114) |
Accrued expenses | 70,738 | 1,316,811 |
Accrued purchase commitment losses | 796,000 | (130,000) |
Net cash provided by operating activities | 10,784,017 | 3,562,867 |
Cash Flows from Investing Activities | ||
Capital expenditures | (12,501,437) | (8,652,666) |
Net cash used in investing activities | (12,501,437) | (8,652,666) |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (9,624,072) | (3,211,856) |
Increase (Decrease) in Book Overdrafts | (1,343,608) | 1,687,447 |
Proceeds from Notes Payable | 18,000,000 | 0 |
Cash Flows from Financing Activities | ||
Debt repayments | (384,063) | (345,923) |
Net cash provided by (used in) financing activities | 6,648,257 | (1,870,332) |
Net Change in Cash, Cash Equivalents and Restricted Cash | 4,930,837 | (6,960,131) |
Cash, Cash Equivalents and Restricted Cash - Beginning of Period | 5,215,244 | 11,112,489 |
Cash, Cash Equivalents and Restricted Cash - End of Period | 10,146,081 | 4,152,358 |
Cash and equivalents | 6,894,249 | 1,088,451 |
Restricted Cash and Cash Equivalents | 3,251,832 | 3,063,907 |
Cash, cash equivalents and restricted cash | 10,146,081 | 4,152,358 |
Supplemental Disclosure of Cash Flow Information | ||
Interest paid | 16,055 | 26,026 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 173,914 | 81,729 |
Noncash Investing and Financing Activities | ||
Capital expenditures in accounts payable | $ 208,880 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Red Trail Energy, LLC, a North Dakota limited liability company (the “Company”), owns and operates a 50 million gallon annual name-plate production ethanol plant near Richardton, North Dakota (the “Plant”). Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, inventory and allowance for doubtful accounts. Actual results could differ from those estimates. Net Income Per Unit Net income per unit is calculated on a basic and fully diluted basis using the weighted average units outstanding during the period. Recently Adopted Accounting Pronouncements Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “ Measurement of Credit Losses on Financial Instruments .” ASU 2016-13 adds a current expected credit loss (“ CECL |
Nature of Operations | Nature of Business |
Revenue
Revenue | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Revenue Recognition The Company recognizes revenue from sales of ethanol and co-products at the point in time when the performance obligations in the contract are met, which is when the customer obtains control of such products and typically occurs upon shipment depending on the terms of the underlying contracts. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. In some instances, the Company enters into contracts with customers that contain multiple performance obligations to deliver specified volumes of co-products over a contractual period of less than 12 months. In such instances, the Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices and recognizes the related revenue as control of each individual product is transferred to the customer in satisfaction of the corresponding performance obligation. Revenue by Source The following table disaggregates revenue by major source for the three and six months ended March 31, 2022 and 2021. Revenues For the three months ended March 31, 2022 (unaudited) For the three months ended March 31, 2021 (unaudited) For the six months ended March 31, 2022 (unaudited) For the six months ended March 31, 2021 (unaudited) Ethanol, E85 and Industrial Alcohol $ 38,328,946 $ 27,082,717 $ 87,580,529 $ 48,216,065 Distillers Grains 9,513,142 5,516,430 18,167,561 10,685,389 Syrup 573,482 277,483 923,123 400,756 Corn Oil 3,216,395 1,342,459 5,725,246 2,424,243 Other 45,814 45,000 108,517 95,191 Total revenue from contracts with customers $ 51,677,779 $ 34,264,089 $ 112,504,976 $ 61,821,644 Shipping and Handling Costs We account for shipping and handling activities related to contracts with customers as costs to fulfill our promises to transfer the associated products. Accordingly, we record customer payments associated with shipping and handling costs as a component of revenue, and classify such costs as a component of cost of goods sold. Customer Deposits Customer deposits are contract liabilities for payments in excess of revenue recognized. Customer deposits are recognized when modified customers make prepayments on their contracts. The ending balances for accounts receivable and customer deposits were as follows as of October 1, 2021 and 2020 and for the six months ended March 31, 2022 and 2021. October 1, 2021 October 1, 2020 For the six months ended March 31, 2022 (unaudited) For the six months ended March 31, 2021 (unaudited) Accounts receivable $ 1,468,521 $ 1,963,236 $ 4,718,900 $ 6,166,428 Customer deposits 11,008 — 2,104 4,245 |
Accounting Changes and Error Co
Accounting Changes and Error Corrections | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Reclassifications | RESTATEMENTS OF PRIOR FINANCIAL INFORMATION This quarterly report on form 10-Q of the Company for the three and six months ended March 31, 2022 includes the restatement of the Company’s previously filed unaudited statement of operations and cash flow statements for the three and six months ended March 31, 2021 due to expenditures that should have been capitalized as construction in progress. The Company’s management has concluded these figures should be re-stated in the statements of operations and cash flows for comparative purposes in 2021 filings. Accordingly, the Company has determined that prior financial statements should be corrected. Furthermore, from a quantitative and qualitative perspective, the Company has determined that correcting the previously filed March 31, 2021 financial statements would not require previously filed reports to be amended. Previously Reported Three Months Ended March 31, 2021 (unaudited) Adjustments Restated Three Months Ended March 31, 2021 (unaudited) Statement of Operations General and Administrative Expenses $ 910,163 $ (195,652) $ 714,511 Operating Income $ 5,215,440 $ 195,652 $ 5,411,092 Net Income $ 6,093,896 $ 195,652 $ 6,289,548 Previously Reported Six Months Ended March 31, 2021 (unaudited) Adjustments Restated Six Months Ended March 31, 2021 (unaudited) Statement of Operations General and Administrative Expenses $ 2,319,699 $ (859,744) $ 1,459,955 Operating Income $ 7,459,256 $ 859,744 $ 8,319,000 Net Income $ 8,359,590 $ 859,744 $ 9,219,334 Statement of Cash Flows Net Income $ 8,359,590 $ 859,744 $ 9,219,334 Net cash provided by operating activities $ 2,703,123 $ 859,744 $ 3,562,867 Capital expenditures $ 7,792,922 $ 859,744 $ 8,652,666 Net cash used in investing activities $ 7,792,922 $ 859,744 $ 8,652,666 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Commodity Contracts As part of its hedging strategy, the Company may enter into ethanol, soybean, soybean oil, natural gas and corn commodity-based derivatives in order to protect cash flows from fluctuations caused by volatility in commodity prices in order to protect gross profit margins from potentially adverse effects of market and price volatility on ethanol sales, corn oil sales, and corn purchase commitments where the prices are set at a future date. These derivatives are not designated as effective hedges for accounting purposes. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. Ethanol derivative fair market value gains or losses are included in the results of operations and are classified as revenue, and corn derivative changes in fair market value are included in cost of goods sold. As of: March 31, 2022 (unaudited) September 30, 2021 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn futures 150 750,000 bushels $ (67,000) — — bushels $ — Corn options 570 2,850,000 bushels $ (96,250) — — bushels $ — Total fair value $ (163,250) $ — Amounts are combined on the balance sheet - negative numbers represent liabilities The following tables provide details regarding the Company's derivative financial instruments at March 31, 2022 and September 30, 2021: Derivatives not designated as hedging instruments: Balance Sheet - as of March 31, 2022 (unaudited) Asset Liability Commodity derivative instruments, at fair value $ — $ 163,250 Total derivatives not designated as hedging instruments for accounting purposes $ — $ 163,250 Balance Sheet - as of September 30, 2021 Asset Liability Commodity derivative instruments, at fair value $ — $ — Total derivatives not designated as hedging instruments for accounting purposes $ — $ — Statement of Operations Income/(Expense) Location of gain (loss) in fair value recognized in income Amount of gain (loss) recognized in income during the three months ended March 31, 2022 (unaudited) Amount of gain (loss) recognized in income during the three months ended March 31, 2021 (unaudited) Amount of gain (loss) recognized in income during the six months ended March 31, 2022 (unaudited) Amount of gain (loss) recognized in income during the six months ended March 31, 2021 (unaudited) Corn derivative instruments Cost of Goods Sold $ 714,021 $ 449,237 $ 1,064,539 $ 698,710 Ethanol derivative instruments Revenue 259,467 494,044 424,770 795,151 Natural gas derivative instruments Cost of Goods Sold 202,770 — (107,450) (1,410) Total $ 1,176,258 $ 943,281 $ 1,381,859 $ 1,492,451 |
Inventory
Inventory | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory is valued at the lower of cost or net realizable value. Inventory values as of March 31, 2022 and September 30, 2021 were as follows: March 31, 2022 September 30, 2021 Raw materials, including corn, chemicals and supplies $ 9,449,006 $ 3,978,299 Work in process 1,313,189 1,321,862 Finished goods, including ethanol and distillers grains 3,597,419 4,622,007 Spare parts 1,674,189 1,624,674 Total inventory $ 16,033,803 $ 11,546,842 Lower of cost or net realizable value adjustments for the three and six months ended March 31, 2022 and 2021 were as follows: For the three months ended March 31, 2022 (unaudited) For the three months ended March 31, 2021 (unaudited) For the six months ended March 31, 2022 (unaudited) For the six months ended March 31, 2021 (unaudited) Loss on firm purchase commitments $ 596,000 $ — $ 796,000 $ — Loss on lower of cost or net realizable value adjustment for inventory on hand $ — $ — $ — $ 263,777 Total loss on lower of cost or net realizable value adjustments $ 596,000 $ — $ 796,000 $ 263,777 |
Bank Financing
Bank Financing | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Bank Financing | BANK FINANCING Ethanol Recovery Program On July 13, 2020, we received a $5.41 million loan through the Bank of North Dakota's Ethanol Recovery Program and Cornerstone Bank ("Cornerstone"). The Ethanol Recovery Program was developed by the North Dakota Ethanol Producers Association and the Bank of North Dakota to use the existing Biofuels Partnership in Assisting Community Expansion ("PACE") program and Value-added Guarantee Loan program to help ethanol production facilities weather the economic challenges caused by the COVID-19 pandemic. Ethanol producers could qualify for up to $15 million of a low interest loan of 1% based on the amount of such producers' annual corn grind. On December 3, 2021 we received forgiveness of $2.65 million of the loan. The forgiveness was recorded as other income. The outstanding balance as of March 31, 2022 was $1.58 million. The maturity date of the loan is July 13, 2025. The fixed interest rate on March 31, 2022 was 3.75% with an interest rate buy down through the Bank of North Dakota to 1%. Revolving Loan On February 3, 2022 we renewed our $10 million revolving loan (the "Revolving Loan") with Cornerstone. On February 3, 2022 the maturity date was extended to March 31, 2022. On April 8, 2022 the Revolving Loan was renewed. The new maturity date is April 7, 2023. At March 31, 2022, we had $10 million available under the Revolving Loan. The variable interest rate on March 31, 2022 was 3.00%. Construction Loans On January 22, 2020, we entered into a $7 million construction loan (the "Construction Loan") with Cornerstone. The original maturity date of the Construction Loan was June 1, 2021. On June 3, 2021 we extended the maturity date to February 1, 2022. On April 8, 2022 the Construction Loan was renewed. The new maturity date is October 8, 2022. At March 31, 2022, we had $7 million available under the Construction Loan. The variable interest rate on March 31, 2022 was 3.00%. On February 1, 2021 we entered into a $28 million construction loan (the "CCS Construction Loan") with Cornerstone for the carbon capture and storage project. The maturity date of the CCS Construction Loan was January 31, 2022. On February 17, 2022 the maturity date was extended to March 15, 2022. On April 8, 2022 we renewed the CCS Construction Loan. The new maturity date is October 8, 2022. As of March 31, 2022 $18 million has been drawn on the CCS Construction Loan to finance construction of the carbon capture and storage project. Upon completion and final verification of the project the $18 million will be refinanced as long-term debt. The variable interest rate on March 31, 2022 was 3.00%. The each of the Company's loans are secured by a lien on substantially all of the assets of the Company. Schedule of debt maturities and lease liabilities for the twelve months ending March 31 Totals 2022 $ 19,135,081 2023 887,221 2024 119,208 2025 36,258 2026 21,658 Total $ 20,199,426 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The following table provides information on those liabilities that are measured at fair value on a recurring basis as of March 31, 2022 and September 30, 2021, respectively. Fair Value Measurement Using Carrying Amount as of March 31, 2022 (unaudited) Fair Value as of March 31, 2022 (unaudited) Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 163,250 $ 163,250 $ 163,250 $ — $ — Total $ 163,250 $ 163,250 $ 163,250 $ — $ — Fair Value Measurement Using Carrying Amount as of September 30, 2021 Fair Value as of September 30, 2021 Level 1 Level 2 Level 3 Assets Commodities derivative instruments $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — |
Leases
Leases | 6 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
leases disclosure text block | LEASES The Company leases railcar and plant equipment. Operating lease right of use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate, unless an implicit rate is readily determinable, as the discount rate for each lease in determining the present value of lease payments. For the six months ended March 31, 2022, the Company's estimated discount rate was 3.00%. Operating lease expense is recognized on a straight-line basis over the lease term. The Company determines if an arrangement is a lease or contains a lease at inception. The Company's existing leases have remaining lease terms of approximately one year to five years, which may include options to extend the leases when it is reasonably certain the Company will exercise those options. At March 31, 2022 the weighted average remaining lease term was two years. The Company does not have lease arrangements with residual value guarantees, sale leaseback terms or material restrictive covenants. The Company does not have any sublease agreements. The Company is generally responsible for maintenance, taxes, and utilities for leased equipment. Rent expense for operating leases was approximately $475,800 and $316,600 for the six months ended March 31, 2022 and 2021, respectively. Equipment under financing leases consists of office equipment and plant equipment. At March 31, 2022 and September 30, 2021, equipment under financing leases was as follows: March 31, 2022 September 30, 2021 Equipment $ 493,414 $ 493,414 Less accumulated amortization (208,111) (196,389) Net equipment under financing lease $ 285,303 $ 297,025 At March 31, 2022, the Company had the following minimum commitments, which at inception had non-cancellable terms of more than one year. Amounts shown below are for the 12 month periods ending March 31: Operating Leases Financing Leases 2022 $ 397,546 $ 4,559 2023 121,597 4,594 2024 35,188 2,989 2025 36,258 — 2026 21,658 — Total minimum lease commitments $ 612,247 12,142 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 12,142 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Firm Purchase Commitments for Corn To ensure an adequate supply of corn to operate the Plant, the Company enters into contracts to purchase corn from local farmers and elevators. At March 31, 2022, the Company had various fixed price contracts for the purchase of approximately 3.7 million bushels of corn. Using the stated contract price for the fixed price contracts, the Company had commitments of approximately $24.5 million related to the 3.7 million bushels under contract. Water On April 21, 2015, we entered into a ten Profit and Cost Sharing Agreement The Company entered into a Profit and Cost Sharing Agreement with Bismarck Land Company, LLC, which became effective on November 1, 2016. The Profit and Cost Sharing Agreement provides that the Company will share 70% of the net revenue generated by the Company from business activities which are brought to the Company by Bismarck Land Company, LLC and conducted on the real estate purchased from the Bismarck Land Company, LLC. The real estate was initially purchased in exchange for 2 million membership units of the Company at $1.66 per unit. This obligation will terminate ten years after the real estate closing date of October 11, 2016 or after Bismarck Land Company, LLC receives $10 million in proceeds from the agreement. In addition, the Profit and Cost Sharing Agreement provides that the Company will pay Bismarck Land Company, LLC 70% of any net proceeds received by the Company from the sale of the subject real estate if a sale were to occur prior to termination of this obligation in accordance with the $10 million cap or the ten Carbon Capture and Storage Project On July 30, 2018, the Company entered into a research agreement with the University of North Dakota Energy and Environmental Research Center to explore the feasibility of injecting carbon dioxide ("CO2") from the fermentation process into a saline formation to lower the carbon intensity value of our ethanol. The Company committed to fund up to $950,000 for this research. The Company had incurred $949,631 through the second quarter of the 2022 fiscal year which is recorded as consulting services under general and administrative expenses. The commitment was fully paid as of March 31, 2022. On October 1, 2020, the Company entered into an agreement with Salof LTD, Inc. for the design, engineering, fabrication and start up of the CO2 capture and liquefaction facility for the carbon capture and storage project. The price of the system including all equipment and services is $11,845,000. The Company had paid $11,262,856 as of March 31, 2022, which is recorded as construction in progress. On May 6, 2021, the Company entered into an agreement with Direct Automation for the DCS Computer System for the carbon capture and storage project. The price of the system including all equipment and installation is $800,992. The Company has paid $779,895 as of March 31, 2022 which is recorded as construction in progress. As of March 31, 2022 the Company has incurred a total of $32.0 million towards the Carbon Capture and Storage Project, which is recorded as construction in progress. The remaining cost to complete the Carbon Capture and Storage Project is roughly $3 million. The expected completion date for the project is May 16, 2022. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has balances and transactions in the normal course of business with various related parties for the purchase of corn, sale of distillers grains and sale of ethanol. The related parties include unit holders, members of the board of governors of the Company, and RPMG, Inc. (“RPMG”). Significant related party activity affecting the financial statements is as follows: March 31, 2022 September 30, 2021 Balance Sheet Accounts receivable $ 2,877,119 $ 1,309,673 Accounts payable 1,386,309 788,050 Accrued expenses 29,973 832,904 For the three months ended March 31, 2022 (unaudited) For the three months ended March 31, 2021 (unaudited) For the six months ended March 31, 2022 (unaudited) For the six months ended March 31, 2021 (unaudited) Statement of Operations Revenues $ 45,370,955 $ 31,143,965 $ 101,851,608 $ 56,270,308 Cost of goods sold 987,487 690,113 1,995,815 1,071,757 General and administrative — 30,162 — 60,463 Inventory Purchases $ 14,945,816 $ 3,274,010 $ 24,397,429 $ 5,661,658 |
Uncertainties Impacting the Eth
Uncertainties Impacting the Ethanol Industry and Our Future Operations | 6 Months Ended |
Mar. 31, 2022 | |
Uncertainties Impacting the Ethanol Industry and Our Future Operations [Abstract] | |
Uncertainties Impacting the Ethanol Industry and Our Future Operations | UNCERTAINTIES IMPACTING THE ETHANOL INDUSTRY AND OUR FUTURE OPERATIONSDuring volatile market conditions, the Company experiences certain risks and uncertainties, which could have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distillers grains to customers primarily located in the United States. Corn for the production process is supplied to the Plant primarily from local agricultural producers and from purchases on the open market. The Company's operating and financial performance is largely driven by prices at which the Company sells ethanol and distillers grains and by the cost at which it is able to purchase corn for operations. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets, although since 2005 the prices of ethanol and gasoline began a divergence with ethanol, which has generally been selling for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn.The cost of corn is generally impacted by factors such as supply and demand, weather, and government programs, global political or economic issues, including but not limited to the war in Ukraine including sanctions associated therewith, or global damaging growing conditions, such as plant disease or adverse weather, including drought, increased fertilizer costs as well as global conflicts. The Company's financial performance is highly dependent on the Federal Renewable Fuels Standard ("RFS"), which requires that a certain amount of renewable fuels must be used each year in the United States. Corn based ethanol, such as the ethanol the Company produces, can be used to meet a portion of the RFS requirement. In November 2013, the EPA issued a proposed rule which would reduce the RFS for 2014, including the RFS requirement related to corn based ethanol. The EPA proposed rule was subject to a comment period which expired in January 2014. On November 30, 2015, the EPA released its final ethanol use requirements for 2014, 2015 and 2016, which were lower than the statutory requirements in the RFS. However, the final RFS for 2017 equaled the statutory requirement which was also the case for the 2018, 2019, 2020 and 2021 RFS final rules. No final RFS has been established for 2022. On January 30, 2020, the World Health Organization declared the coronavirus outbreak (COVID-19) a “Public Health Emergency of International Concern” and on March 11, 2020, declared COVID-19 a pandemic. Quarantines, labor shortages, and other disruptions to the Company’s operations, and those of its customers, adversely impacted the Company’s revenues, ability to provide its services and operating results. Any future quarantines, labor shortages, or other disruptions to the Company's operations, or those of its customers may adversely impact the Company's revenues, ability to provide its services and operating results. Like the COVID-19 pandemic, any significant outbreak of epidemic, pandemic or contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, including the geographical area in which the Company operates, resulting in an economic downturn that could affect demand for its goods and services. The extent to which COVID-19 will impact the Company’s long-term results will depend on future developments, which are highly uncertain and cannot be predicted, including new developments regarding continued distribution of the COVID-19 vaccine, new information which may emerge concerning the severity of the coronavirus, prevalence of new COVID-19 cases and actions taken to contain the coronavirus or its impact, among others. |
Member's Equity
Member's Equity | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Member's Equity | MEMBER'S EQUITY Changes in member's equity for the six months ended March 31, 2022 and 2021. Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2021 $ 39,044,595 $ 75,541 $ 31,034,079 $ (159,540) $ 69,994,675 Net income 19,371,546 19,371,546 Balances December 31, 2021 $ 39,044,595 $ 75,541 $ 50,405,625 $ (159,540) $ 89,366,221 Distribution (9,624,072) (9,624,072) Net income 4,439,004 4,439,004 Balances - March 31, 2022 $ 39,044,595 $ 75,541 $ 45,220,557 $ (159,540) $ 84,181,153 Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2020 $ 39,044,595 $ 75,541 $ 21,620,256 $ (159,540) $ 60,580,852 Net income 2,265,694 2,265,694 Balances - December 31, 2020 $ 39,044,595 $ 75,541 $ 23,885,950 $ (159,540) $ 62,846,546 Distribution $ (3,211,856) $ (3,211,856) Net income $ 6,289,548 $ 6,289,548 Balances - March 31, 2021 $ 39,044,595 $ 75,541 $ 26,963,642 $ (159,540) $ 65,924,238 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENTSOn April 8, 2022 the Company renewed the Revolving Loan, the Construction Loan and the CCS Loan with Cornerstone Bank. See Note 6 - Bank Financing for a more detailed discussion. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates |
Net Income Per Unit | Net Income Per UnitNet income per unit is calculated on a basic and fully diluted basis using the weighted average units outstanding during the period. |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “ Measurement of Credit Losses on Financial Instruments .” ASU 2016-13 adds a current expected credit loss (“ CECL |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates revenue by major source for the three and six months ended March 31, 2022 and 2021. Revenues For the three months ended March 31, 2022 (unaudited) For the three months ended March 31, 2021 (unaudited) For the six months ended March 31, 2022 (unaudited) For the six months ended March 31, 2021 (unaudited) Ethanol, E85 and Industrial Alcohol $ 38,328,946 $ 27,082,717 $ 87,580,529 $ 48,216,065 Distillers Grains 9,513,142 5,516,430 18,167,561 10,685,389 Syrup 573,482 277,483 923,123 400,756 Corn Oil 3,216,395 1,342,459 5,725,246 2,424,243 Other 45,814 45,000 108,517 95,191 Total revenue from contracts with customers $ 51,677,779 $ 34,264,089 $ 112,504,976 $ 61,821,644 |
Deposit Liabilities, Type | The ending balances for accounts receivable and customer deposits were as follows as of October 1, 2021 and 2020 and for the six months ended March 31, 2022 and 2021. October 1, 2021 October 1, 2020 For the six months ended March 31, 2022 (unaudited) For the six months ended March 31, 2021 (unaudited) Accounts receivable $ 1,468,521 $ 1,963,236 $ 4,718,900 $ 6,166,428 Customer deposits 11,008 — 2,104 4,245 |
Accounting Changes and Error _2
Accounting Changes and Error Corrections (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | . Previously Reported Three Months Ended March 31, 2021 (unaudited) Adjustments Restated Three Months Ended March 31, 2021 (unaudited) Statement of Operations General and Administrative Expenses $ 910,163 $ (195,652) $ 714,511 Operating Income $ 5,215,440 $ 195,652 $ 5,411,092 Net Income $ 6,093,896 $ 195,652 $ 6,289,548 Previously Reported Six Months Ended March 31, 2021 (unaudited) Adjustments Restated Six Months Ended March 31, 2021 (unaudited) Statement of Operations General and Administrative Expenses $ 2,319,699 $ (859,744) $ 1,459,955 Operating Income $ 7,459,256 $ 859,744 $ 8,319,000 Net Income $ 8,359,590 $ 859,744 $ 9,219,334 Statement of Cash Flows Net Income $ 8,359,590 $ 859,744 $ 9,219,334 Net cash provided by operating activities $ 2,703,123 $ 859,744 $ 3,562,867 Capital expenditures $ 7,792,922 $ 859,744 $ 8,652,666 Net cash used in investing activities $ 7,792,922 $ 859,744 $ 8,652,666 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments Commodity Contracts | As of: March 31, 2022 (unaudited) September 30, 2021 Contract Type # of Contracts Notional Amount (Qty) Fair Value # of Contracts Notional Amount (Qty) Fair Value Corn futures 150 750,000 bushels $ (67,000) — — bushels $ — Corn options 570 2,850,000 bushels $ (96,250) — — bushels $ — Total fair value $ (163,250) $ — Amounts are combined on the balance sheet - negative numbers represent liabilities |
Derivatives Not Designated As Hedging Instruments, Balance Sheet | The following tables provide details regarding the Company's derivative financial instruments at March 31, 2022 and September 30, 2021: Derivatives not designated as hedging instruments: Balance Sheet - as of March 31, 2022 (unaudited) Asset Liability Commodity derivative instruments, at fair value $ — $ 163,250 Total derivatives not designated as hedging instruments for accounting purposes $ — $ 163,250 Balance Sheet - as of September 30, 2021 Asset Liability Commodity derivative instruments, at fair value $ — $ — Total derivatives not designated as hedging instruments for accounting purposes $ — $ — |
Derivatives Not Designated as Hedging Instruments, Statement of Operations | Statement of Operations Income/(Expense) Location of gain (loss) in fair value recognized in income Amount of gain (loss) recognized in income during the three months ended March 31, 2022 (unaudited) Amount of gain (loss) recognized in income during the three months ended March 31, 2021 (unaudited) Amount of gain (loss) recognized in income during the six months ended March 31, 2022 (unaudited) Amount of gain (loss) recognized in income during the six months ended March 31, 2021 (unaudited) Corn derivative instruments Cost of Goods Sold $ 714,021 $ 449,237 $ 1,064,539 $ 698,710 Ethanol derivative instruments Revenue 259,467 494,044 424,770 795,151 Natural gas derivative instruments Cost of Goods Sold 202,770 — (107,450) (1,410) Total $ 1,176,258 $ 943,281 $ 1,381,859 $ 1,492,451 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory is valued at the lower of cost or net realizable value. Inventory values as of March 31, 2022 and September 30, 2021 were as follows: March 31, 2022 September 30, 2021 Raw materials, including corn, chemicals and supplies $ 9,449,006 $ 3,978,299 Work in process 1,313,189 1,321,862 Finished goods, including ethanol and distillers grains 3,597,419 4,622,007 Spare parts 1,674,189 1,624,674 Total inventory $ 16,033,803 $ 11,546,842 |
Long-term Purchase Commitment | Lower of cost or net realizable value adjustments for the three and six months ended March 31, 2022 and 2021 were as follows: For the three months ended March 31, 2022 (unaudited) For the three months ended March 31, 2021 (unaudited) For the six months ended March 31, 2022 (unaudited) For the six months ended March 31, 2021 (unaudited) Loss on firm purchase commitments $ 596,000 $ — $ 796,000 $ — Loss on lower of cost or net realizable value adjustment for inventory on hand $ — $ — $ — $ 263,777 Total loss on lower of cost or net realizable value adjustments $ 596,000 $ — $ 796,000 $ 263,777 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The each of the Company's loans are secured by a lien on substantially all of the assets of the Company. Schedule of debt maturities and lease liabilities for the twelve months ending March 31 Totals 2022 $ 19,135,081 2023 887,221 2024 119,208 2025 36,258 2026 21,658 Total $ 20,199,426 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides information on those liabilities that are measured at fair value on a recurring basis as of March 31, 2022 and September 30, 2021, respectively. Fair Value Measurement Using Carrying Amount as of March 31, 2022 (unaudited) Fair Value as of March 31, 2022 (unaudited) Level 1 Level 2 Level 3 Liabilities Commodities derivative instruments $ 163,250 $ 163,250 $ 163,250 $ — $ — Total $ 163,250 $ 163,250 $ 163,250 $ — $ — Fair Value Measurement Using Carrying Amount as of September 30, 2021 Fair Value as of September 30, 2021 Level 1 Level 2 Level 3 Assets Commodities derivative instruments $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — |
Leases, Codification Topic 840
Leases, Codification Topic 840 (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Capital Leased Assets | Equipment under financing leases consists of office equipment and plant equipment. At March 31, 2022 and September 30, 2021, equipment under financing leases was as follows: March 31, 2022 September 30, 2021 Equipment $ 493,414 $ 493,414 Less accumulated amortization (208,111) (196,389) Net equipment under financing lease $ 285,303 $ 297,025 |
Schedule of Future Minimum Payments for Capital Leases | At March 31, 2022, the Company had the following minimum commitments, which at inception had non-cancellable terms of more than one year. Amounts shown below are for the 12 month periods ending March 31: Operating Leases Financing Leases 2022 $ 397,546 $ 4,559 2023 121,597 4,594 2024 35,188 2,989 2025 36,258 — 2026 21,658 — Total minimum lease commitments $ 612,247 12,142 Less amount representing interest — Present value of minimum lease commitments included in notes payable on the balance sheet $ 12,142 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Significant related party activity affecting the financial statements is as follows: March 31, 2022 September 30, 2021 Balance Sheet Accounts receivable $ 2,877,119 $ 1,309,673 Accounts payable 1,386,309 788,050 Accrued expenses 29,973 832,904 For the three months ended March 31, 2022 (unaudited) For the three months ended March 31, 2021 (unaudited) For the six months ended March 31, 2022 (unaudited) For the six months ended March 31, 2021 (unaudited) Statement of Operations Revenues $ 45,370,955 $ 31,143,965 $ 101,851,608 $ 56,270,308 Cost of goods sold 987,487 690,113 1,995,815 1,071,757 General and administrative — 30,162 — 60,463 Inventory Purchases $ 14,945,816 $ 3,274,010 $ 24,397,429 $ 5,661,658 |
Member's Equity (Tables)
Member's Equity (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Changes in Member's Equity | Changes in member's equity for the six months ended March 31, 2022 and 2021. Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2021 $ 39,044,595 $ 75,541 $ 31,034,079 $ (159,540) $ 69,994,675 Net income 19,371,546 19,371,546 Balances December 31, 2021 $ 39,044,595 $ 75,541 $ 50,405,625 $ (159,540) $ 89,366,221 Distribution (9,624,072) (9,624,072) Net income 4,439,004 4,439,004 Balances - March 31, 2022 $ 39,044,595 $ 75,541 $ 45,220,557 $ (159,540) $ 84,181,153 Class A Member Units Additional Paid in Capital Accumulated Deficit/Retained Earnings Treasury Units Total Member Equity Balances - September 30, 2020 $ 39,044,595 $ 75,541 $ 21,620,256 $ (159,540) $ 60,580,852 Net income 2,265,694 2,265,694 Balances - December 31, 2020 $ 39,044,595 $ 75,541 $ 23,885,950 $ (159,540) $ 62,846,546 Distribution $ (3,211,856) $ (3,211,856) Net income $ 6,289,548 $ 6,289,548 Balances - March 31, 2021 $ 39,044,595 $ 75,541 $ 26,963,642 $ (159,540) $ 65,924,238 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Nature of Business (Details) gal in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)gal | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Product Information [Line Items] | ||||||
Net cash provided by operating activities | $ 10,784,017 | $ 3,562,867 | ||||
Cash, cash equivalents and restricted cash | $ 10,146,081 | $ 4,152,358 | 10,146,081 | 4,152,358 | $ 5,215,244 | $ 11,112,489 |
Loss on firm purchase commitments | $ 596,000 | $ 0 | $ 796,000 | $ 0 | ||
Ethanol | ||||||
Product Information [Line Items] | ||||||
Annual production capacity | gal | 50 |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | $ 51,677,779 | $ 34,264,089 | $ 112,504,976 | $ 61,821,644 | ||
Accounts receivable, primarily related party | 4,718,900 | 6,166,428 | 4,718,900 | 6,166,428 | $ 1,468,521 | $ 1,963,236 |
Other Liabilities, Current | 2,104 | 4,245 | 2,104 | 4,245 | $ 11,008 | $ 0 |
Ethanol, E85 and Industrial Alcohol | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 38,328,946 | 27,082,717 | 87,580,529 | 48,216,065 | ||
Distillers Grains | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 9,513,142 | 5,516,430 | 18,167,561 | 10,685,389 | ||
Syrup | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 573,482 | 277,483 | 923,123 | 400,756 | ||
Corn Oil | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 3,216,395 | 1,342,459 | 5,725,246 | 2,424,243 | ||
Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | $ 45,814 | $ 45,000 | $ 108,517 | $ 95,191 |
Accounting Changes and Error _3
Accounting Changes and Error Corrections (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
General and Administrative Expenses | $ 659,859 | $ 714,511 | $ 1,757,039 | $ 1,459,955 | ||
Operating Income (Loss) | 4,419,297 | 5,411,092 | 21,131,532 | 8,319,000 | ||
Net income | $ 4,439,004 | $ 19,371,546 | 6,289,548 | $ 2,265,694 | 23,810,550 | 9,219,334 |
Net cash provided by operating activities | 10,784,017 | 3,562,867 | ||||
Capital expenditures | 12,501,437 | 8,652,666 | ||||
Net Cash Provided by (Used in) Investing Activities | $ 12,501,437 | 8,652,666 | ||||
General and Administrative Expense | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Quarterly Financial Information, Quarterly Charges and Credits, Amount Affecting Comparability | 910,163 | 2,319,699 | ||||
Prior Period Reclassification Adjustment | (195,652) | (859,744) | ||||
Operating Income (Loss) | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Quarterly Financial Information, Quarterly Charges and Credits, Amount Affecting Comparability | 5,215,440 | 7,459,256 | ||||
Prior Period Reclassification Adjustment | 195,652 | 859,744 | ||||
Net Income (Loss) | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Quarterly Financial Information, Quarterly Charges and Credits, Amount Affecting Comparability | 6,093,896 | 8,359,590 | ||||
Prior Period Reclassification Adjustment | $ 195,652 | 859,744 | ||||
Net Cash Provided by Operating Activities | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Quarterly Financial Information, Quarterly Charges and Credits, Amount Affecting Comparability | 2,703,123 | |||||
Cash used for Capital Expenditures | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Quarterly Financial Information, Quarterly Charges and Credits, Amount Affecting Comparability | 7,792,922 | |||||
Prior Period Reclassification Adjustment | 859,744 | |||||
Net cash used in investing activities | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Quarterly Financial Information, Quarterly Charges and Credits, Amount Affecting Comparability | 7,792,922 | |||||
Prior Period Reclassification Adjustment | 859,744 | |||||
Revision of Prior Period, Adjustment | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Prior Period Reclassification Adjustment | $ 859,744 |
Derivative Instruments - Commod
Derivative Instruments - Commodity Contracts (Details) | Mar. 31, 2022USD ($)bucontract | Sep. 30, 2021USD ($)bucontract |
Commodity Contract | Commodity | ||
Derivative [Line Items] | ||
Assets | $ (163,250) | $ 0 |
Corn | Commodity | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 150 | 0 |
Notional Amount (Qty) | bu | 750,000 | 0 |
Assets | $ (67,000) | $ 0 |
Corn | Corn options | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 570 | 0 |
Notional Amount (Qty) | bu | 2,850,000 | 0 |
Assets | $ (96,250) | $ 0 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) - Commodity Contract - Not Designated as Hedging Instrument - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 0 |
Derivative Liability, Fair Value, Gross Liability | 163,250 | 0 |
Fair Value | 0 | 0 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 163,250 | $ 0 |
Derivative Instruments - Income
Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Corn | Cost of Goods Sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 714,021 | $ 449,237 | $ 1,064,539 | $ 698,710 |
Ethanol | Revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 259,467 | 494,044 | 424,770 | 795,151 |
Natural gas | Cost of Goods Sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 202,770 | 0 | (107,450) | (1,410) |
Commodity Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 1,176,258 | $ 943,281 | $ 1,381,859 | $ 1,492,451 |
- Narrative (Details)
- Narrative (Details) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials, including corn, chemicals and supplies | $ 9,449,006 | $ 3,978,299 |
Work in process | 1,313,189 | 1,321,862 |
Finished goods, including ethanol and distillers grains | 3,597,419 | 4,622,007 |
Spare parts | 1,674,189 | 1,624,674 |
Inventory | $ 16,033,803 | $ 11,546,842 |
Inventory - Total Loss on Lower
Inventory - Total Loss on Lower of Cost or Market Adjustment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | ||||
Loss on firm purchase commitments | $ 596,000 | $ 0 | $ 796,000 | $ 0 |
Lower of cost or market inventory adjustment | 0 | 0 | 0 | 263,777 |
Total loss on lower of cost or market adjustments | $ 596,000 | $ 0 | $ 796,000 | $ 263,777 |
Bank Financing - Narrative (Det
Bank Financing - Narrative (Details) - USD ($) | Dec. 03, 2021 | Mar. 31, 2022 | Feb. 01, 2021 | Jul. 13, 2020 | Jan. 22, 2020 |
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 20,199,426 | ||||
Long-Term Debt, Maturity, Year One | 19,135,081 | ||||
Long-Term Debt, Maturity, Year Two | 887,221 | ||||
Long-Term Debt, Maturity, Year Three | 119,208 | ||||
Long-Term Debt, Maturity, Year Four | 36,258 | ||||
Long-Term Debt, Maturity, Year Five | $ 21,658 | ||||
construction loan, interest rate | 300.00% | ||||
Revolving loan | Revolving loan | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 10,000,000 | ||||
Line of Credit Facility, Interest Rate at Period End | 3.00% | ||||
Bank of North Dakota Ethanol Recovery Progrm | (3.75%) | ||||
Bank of North Dakota Ethanol Recovery Program, Rate after Buy Down | 1.00% | ||||
Long term debt, revolving loan | $ 10,000,000 | ||||
Revolving loan | Construction Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,000,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 7,000,000 | ||||
Line of Credit Facility, Interest Rate at Period End | 3.00% | ||||
Revolving loan | Bank of North Dakota and Cornerstone Bank | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 5,410,000 | ||||
debt instrument, outstanding amount | $ 1,580,000 | ||||
Gain (Loss) on Extinguishment of Debt | $ 2.65 | ||||
Revolving loan | Carbon Capture and Storage | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 28 | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | 18 | ||||
Bank of North Dakota and Cornerstone Bank | Revolving loan | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15 | ||||
Line of Credit Facility, Interest Rate at Period End | 100.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Assets - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | $ 163,250 | $ 0 |
Liabilities | 163,250 | 0 |
Financial Instruments, Owned, Physical Commodities At Carrying Amount | 163,250 | 0 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Carrying Amount | 163,250 | 0 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 163,250 | 0 |
Liabilities | 163,250 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 0 | 0 |
Liabilities | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodities derivative instruments | 0 | 0 |
Liabilities | $ 0 | $ 0 |
Leases, Codification Topic 84_2
Leases, Codification Topic 840 (Details) - USD ($) | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Capital Leased Assets [Line Items] | |||
Discount rate (percentage) | 3.00% | ||
Operating Leased Assets [Line Items] | |||
Current Year | $ 397,546 | ||
Year One | 121,597 | ||
Year Two | 35,188 | ||
Year Three | 36,258 | ||
Year Four | 21,658 | ||
Total minimum lease commitments | 612,247 | ||
Current Year | 4,559 | ||
Year One | 4,594 | ||
Year Two | 2,989 | ||
Year Three | 0 | ||
Year Four | 0 | ||
Finance Lease, Liability, Undiscounted Excess Amount | 0 | ||
Total minimum lease commitments | 12,142 | ||
Finance Lease, Liability | $ 12,142 | ||
Weighted average remaining lease term | 2 years | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Lease terms | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Lease terms | 5 years | ||
Equipment [Member] | |||
Capital Leased Assets [Line Items] | |||
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | $ 493,414 | $ 493,414 | |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | 208,111 | 196,389 | |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total | 285,303 | $ 297,025 | |
Transportation Equipment | |||
Capital Leased Assets [Line Items] | |||
Rent expense for operating leases | $ 475,800 | $ 316,600 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ / shares in Units, shares in Millions, gal in Millions, bu in Millions | Nov. 01, 2016USD ($)$ / sharesshares | Oct. 11, 2016 | Mar. 31, 2022USD ($)bugal | Sep. 30, 2021USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Accrued payments | $ 29,973 | $ 832,904 | ||
Commitment to fund research (up to) | 950,000 | |||
Amount paid | 949,631 | |||
CO2 liquefaction facility [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
capital project, commitment | 11,845,000 | |||
capital project, balance paid to date | 11,262,856 | |||
DCS Computer System | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
capital project, commitment | 800,992 | |||
capital project, balance paid to date | 779,895 | |||
Carbon Capture and Storage | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
capital project, balance paid to date | 32,000,000 | |||
Capital Project, Remaining Balance | 3,000,000 | |||
Profit and Cost Sharing Agreement | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Percent Of Net Revenue Generated From Business Activities Conducted On Purchased Real Estate | 70.00% | |||
Stock Issued During Period, Shares, Purchase of Assets | shares | 2 | |||
Shares Issued, Price Per Share | $ / shares | $ 1.66 | |||
Length Of Contract | 10 years | 10 years | ||
Payments for (Proceeds from) Other Real Estate Partnerships | $ 10,000,000 | |||
Guarantor Obligations, Liquidation Proceeds, Percentage | 70.00% | |||
Proceeds from Sale of Real Estate | $ 28,315 | |||
Bushels of corn | Fixed price contract | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount, volume | bu | 3.7 | |||
Commitments | $ 24,500,000 | |||
Raw water | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Contract term | 10 years | |||
Minimum purchase, volume | gal | 160 | |||
Minimum estimated liability | $ 424,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |||||
Accounts receivable | $ 2,877,119 | $ 2,877,119 | $ 1,309,673 | ||
Accounts payable | 1,386,309 | 1,386,309 | 788,050 | ||
Accrued payments | 29,973 | 29,973 | $ 832,904 | ||
Revenues | 45,370,955 | $ 31,143,965 | 101,851,608 | $ 56,270,308 | |
Cost of goods sold | 987,487 | 690,113 | 1,995,815 | 1,071,757 | |
General and administrative | 0 | 30,162 | 0 | 60,463 | |
Inventory Purchases | $ 14,945,816 | $ 3,274,010 | $ 24,397,429 | $ 5,661,658 |
Member's Equity - Schedule of C
Member's Equity - Schedule of Changes in Member's Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 89,366,221 | $ 69,994,675 | $ 62,846,546 | $ 60,580,852 | $ 69,994,675 | $ 60,580,852 |
Net income | 4,439,004 | 19,371,546 | 6,289,548 | 2,265,694 | 23,810,550 | 9,219,334 |
Ending balance | 84,181,153 | 89,366,221 | 65,924,238 | 62,846,546 | 84,181,153 | 65,924,238 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (9,624,072) | (3,211,856) | (9,624,072) | (3,211,856) | ||
Class A Member Units | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 |
Ending balance | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 | 39,044,595 |
Additional Paid in Capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 |
Ending balance | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 | 75,541 |
Accumulated Deficit/Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 50,405,625 | 31,034,079 | 23,885,950 | 21,620,256 | 31,034,079 | 21,620,256 |
Net income | 4,439,004 | 19,371,546 | 6,289,548 | 2,265,694 | ||
Ending balance | 45,220,557 | 50,405,625 | 26,963,642 | 23,885,950 | 45,220,557 | 26,963,642 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | (9,624,072) | (3,211,856) | ||||
Treasury Units | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (159,540) | (159,540) | (159,540) | (159,540) | (159,540) | (159,540) |
Ending balance | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) | $ (159,540) |